Addressing Trade Facilitation Commitments and Implementation Capacity Gaps: Issues and Evidence from Nigeria

Abstract

Since the submission of the instrument of ratification of the Trade Facilitation Agreement (TFA) to the World Trade Organization (WTO) Director General (DG) in Davos on February 17, 2017, there has been a concerted effort by Nigeria to strengthen trade capacity and improve trade-related infrastructure so that Nigeria can reap the benefits of trade. Trade facilitation efforts must target delays as well as infrastructure. Weaknesses in infrastructure—both hard (ports and roads) and soft (customs and other regulations)—also adversely affect trade.

Trade facilitation is a major concern for the private sector, as red tape and inefficiencies in border management and corridor performance can raise transport costs substantially, resulting in a major loss. Much of what is needed to improve Nigeria’s trade has already been agreed upon in the context of TFAs. The implementation of what has been agreed is the key obstacle.

This chapter is a step towards highlighting impediments to trade facilitation in Nigeria, the rationale for launching the National Committee on Trade Facilitation (NCTF), the role and objectives of the NCTF, the various types of support by development partners in tackling the trade facilitation implementation gap. Further, the chapter concludes by addressing the gap between trade facilitation commitments and implementation. It proffers policy recommendations on what Nigeria needs to do in order to use trade as an engine of economic development.

Annex I: Trade Facilitation Task Force Committee’s Terms of Reference (TOR)

The Terms of Reference are highlighted as follows:

• (i) Receiving of reports from stakeholders on bad practices by operational officers at Nigerian ports and border posts, with a view to intervening and reversing the same;

• (ii) Making recommendations to the Government on strategic trade facilitation goals and operations;

• (iii) Ensuring that trade facilitation-related agencies provide Trade Facilitation infrastructure based on their responsibility;

• (iv) Provide forums for discussions by stakeholders on trade facilitation-related policies to address any overlap functions;

• (v) Sensitizing the public on trade facilitation measures, practices, and standards;

• (vi) Mapping national positions on WTO Trade facilitation for negotiations in line with the National Trade Policy;

• (vii) Facilitating the process of implementation of the WTO Agreement on Trade Facilitation;

• (viii) Ensuring the free movement of goods and people at highways, airports, and sea and border posts;

• (ix) Ensuring that there is the total elimination of unauthorized checkpoints;

• (x) Elimination of multiple taxation; and

• (xi) Reducing administrative bottlenecks, institutional rigidities, and bureaucracy related to Trade Facilitation.